Conditions right for sal
2016 could be the year of the exit, says financier
Low interest rates, tax relief on sale value and stable business confidence are encouraging cash-rich, larger corporates to buy businesses, said Graham Cunning of Campbell Dallas.
However, he warned that these favourable conditions may not last for long, with interest rates likely to edge higher and uncertainty hanging over the future of entrepreneurs relief.
He said: “Entrepreneurs Relief rewards business owners for their hard work and fortunately remains in place, so we would urge anyone thinking of an exit to consider the benefits of bringing forward their planning before it is changed.
“There is a real appetite in the VC, angel and private equity houses for opportunities to invest in quality businesses with a strong position in their markets and potential for good growth.
“These conditions will not remain for ever, so 2016 could be an ideal year for an exit, whether as trade sales, employee or management buyout, or partial sales of equity.
“Oil and Gas is the one sector that remains very subdued and there is unlikely to be a recovery in deal flow until the final quarter at the earliest.
“That said, despite the oil price crash, there is still an active M&A market in the Oil and Gas sector for quality businesses. Despite the downturn there are still plenty of well-resourced oil & gas corporates that are focussing on executing their acquisition strategies, so business owners wanting to sell may wish to take advantage of that opportunity.”